Some stakeholders in the real estate sector have emphasised the need for government to provide incentives to players within the ecosystem.
According to them, this will boost wealth and job creation, therefore leading to economic prosperity.
They spoke at the Nigerian British Chamber of Commerce (NBCC) and the International Real Estate Federation (FIABCI) Real Estate Outlook 2023, which was held in Lagos recently, and was themed; “Pitching Your Tent Post-2023 Elections”.
Dr. Biodun Adedipe, Chief Consultant, B. Adedipe Associates Ltd., highlighting the nexus between the real estate sector and the economy, said a 0.79 correlation growth rate existed between the country’s Gross Domestic Product (GDP) and the sector.
According to him, a focused government will give proper attention to the property market, availing as many incentives for the entire real estate ecosystem.
“The real estate sector is among the big six sectors that drive economic growth and while the sector has shown strong growth. Its contribution to GDP appears to be trending downwards. This means there’s room for investments to get the kind of impact we need to improve GDP seeing that real estate is systemic to every modern economy if given the right push.
“The 2030 projections for increasing population pegged at 8.5 billion people means the real estate must be properly positioned to create the value across all strata as it is expected to be,” he said.
Also, Mrs. Jumoke Akinwunmi, who is the Managing Director, Alitheia, said there was a need for the execution of affordable housing to bridge the housing deficits in the country, saying that its success was hinged on the partnership between the private and public sectors.
Akinwunmi urged the government to provide more levers to make affordable housing a reality.
“There’s also the need to create institutions that would serve as middlemen between the government and private sector for easy accessibility and to achieve the success it deserves,” she said.
On his part, Dr. Solomon Aigbavboa, Chief Executive Officer (CEO), Sonedis Logistics, pointed out the opportunities for logistics, particularly warehousing within the real estate ecosystem.
He noted that the warehousing market size, which had an annual growth rate of 11 percent, would worth 170 million dollars by end of 2023, stating that its major drivers included increasing population, rising demands for e-commerce, and the demand for refrigerated warehousing.
“For the increasing demands of logistics of agro products, fast-moving consumer goods, and emerging specialised markets, such as cold chain facilities in pharmaceuticals, there is a greater corresponding amount of returns.
“This means that the logistics arm of real estate is an area for government and private sector to look into and invest in, to send a clear signal to the real estate sector,” he said.
Mr. Frank Okosun, CEO, Frank Knight Nigeria, said post the 2023 elections and following a transition to a new democratic regime, the property market might see a pent-up demand.
In her remarks, Ms. Toke Benson-Awoyinka, Special Adviser to Lagos State Governor on Housing, reiterated that the real estate sector remained a focal point of Governor Babajide Sanwo-Olu’s administration.
She said Lagos would continue to explore data gathering, create policies and regulations to spur investments, and address housing deficits within the state.